THE TICKER

Quarterly fee hike proposed for business

WASHINGTON — Businesses hoping to use bankruptcy protection to stay alive could soon face a new hurdle: bigger bills.

Companies in Chapter 11 would pay significantly more in quarterly fees to the federal government, in some cases triple what they're paying now, under a budget proposal set to take effect next year.

The U.S. Trustee Program, a Justice Department office that monitors consumer and business bankruptcy cases, has proposed a 30 percent fee increase. It also wants to triple the fees for the biggest companies.

The new fee structure would take effect on Jan. 1 and is expected to raise an additional $46.4 million, though the U.S. Trustee expects to collect only half of that in the first year.

The office is funded entirely through fees, according to its budget proposal. In addition to the quarterly Chapter 11 fees, the office charges filing fees for all bankruptcy cases. According to the Office of Management and Budget, the trustee last raised Chapter 11 fees in 1991.